A Brighter Future: 5 Reasons to Get Out of Debt

When credit card debt, student loans, or medical bills have become a consistent part of your life, the prospect of getting out of debt can sound overwhelming. But the truth is that no matter how large or small your debts may be, there are time-tested strategies that can help you get back on your feet. And though the road to debt recovery can be challenging from time to time, the end result is well worth the effort. In this article we will discuss a few reasons why getting out of debt is so worth it.

 

1. Access Education. According to the College Board, the average cost of in-state tuition at public universities in the US is a little over $9000 per year. And although scholarships and grants may cover a portion of this cost, the truth is that taking out a loan and/or dipping into savings funds are usually necessary strategies. Getting out of debt is the first step toward helping yourself and/or your kids to achieve those big dreams about higher education!

 

2. Become a Homeowner. Even for people who are quite well-off, a home loan is usually necessary in order to make such a large purchase. This underscores once again the importance of good credit and a low debt-to-income ratio.

 

3. Increase Your Mobility. Another common problem that people with bad credit suffer from is difficulty getting financing to buy a new car. So reducing your debt can be a great way of getting a better ride!

 

4. Prioritize Healthcare. Don't let medical bills be a determining factor in the healthcare choices you make: getting rid of medical debt is easier than you think!

 

5. Invest in the Future. Most financial experts agree that reducing debt is actually a more profitable expense of money than most investments.

 

For more information on reducing your debt in a sustainable way, visit Madison Monroe and Associates online today!

Three Things to Do Before Selecting a Realtor

Buying a home is the dream of countless renters -- and even though owning a home doesn't guarantee financial security, it is oftentimes a good investment. As long as you buy within your budget, make payments regularly, and take care of the house and the property, owning a home can be a great way to increase your net worth while paying for the necessity of living space. That is one important reason why homeownership is such an important aspect of the “American dream”.

 

As much potential as purchasing a home does offer, it can still be an intimidating process -- especially for people who are buying their first home. If you are unsure how to go about buying a house, then this article can help you get through the initial stages of the process up until you have an experienced realtor guiding you.

 

Step One: Research. Here’s the good news: if you are reading this article, then you are already doing something right! If you are planning on buying a home, then you should learn as much as you can about the home buying process, your local real estate market, your local realtors, etc. Knowledge is power, and the more you know about buying a home, the better!

 

Step two: Budget. Most financial experts recommend that your mortgage payments should not exceed 28 percent of your monthly income. With that in mind, check out this mortgage payment calculator to estimate the budget you can allot to buying your new home.

 

Step three: Pre-qualification. Contact banks in your area to get pre-qualified for a mortgage. This process is relatively straightforward -- the banks will simply give you a rough idea of how much you can afford to take out on a loan. If your credit is poor, this may not be enough to buy within the budget you had allocated -- in which case you may wish to work on improving your credit score before beginning the home purchasing process. If you can afford a home within your budget, however, then you are ready to begin searching for a qualified realtor to begin the home purchasing process!